European equities closed in the red on Tuesday as Greece remained firmly in the spotlight for investors.

The embattled country looks likely to default on a 1.6-billion-euro ($1.8 billion) debt payment due to the International Monetary Fund (IMF) later in the day, with its externally-funded bailout due to expire at midnight.

The U.K.'s FTSE 100 closed around 1.5 percent lower, despite U.K. economic growth for the first quarter being revised upwards. The Office of National Statistics reported on Tuesday that the economy grew by 2.9 percent in the first three months of 2015 from the same time last year.

Greek fears

Greek officials have already warned that the country is unable to pay the money due to the IMF, after reforms-for-aid talks with creditors broke down at the weekend.

On Tuesday, Athens proposed a new, two-year bailout deal with the European Stability Mechanism. This would be to "fully cover its financing needs and the simultaneous restructuring of debt," according to a translated press release from the office of the Greek Prime Minister.

The new proposal is expected to be discussed by the Eurogroup of euro zone finance ministers later on Tuesday.